B.J. Fairchild-Newman, Shelbyville News Staff Writer
A trip to nearby Indiana Downs to feed a few quarters into proposed slot machines moved closer to reality on Tuesday when the Indiana Horse Racing Commission approved an ownership transfer that makes Oliver Racing LLC the owner of approximately 95 percent of the track.
The commission voted unanimously to allow LHT Capital LLC, owned by Paul Estridge and his family, to sell its 34 percent minority interest in Indiana Downs to Oliver Racing for $58 million. In exchange for these "windfall profits," Estridge also agreed to pay the state of Indiana $9 million that will be used for property tax relief and donate $10 million to charity through the Legacy Fund, operated by the Central Indiana Community Foundation. Capital also will donate another $10 million to benefit Indiana businesses, following the closing of the purchase, which is expected within two business days.
A contingent of Shelby County supporters from city, county and state government was onhand to support the transfer. Shelbyville Mayor Scott Furgeson said the transfer of ownership will allow the community to "look to the future." Jeff Sponsel, a member of the Shelbyville Common Council, said the developments at the track equal progress - "and you can't have too much progress in this economy."
Tim Barrick, a member of the Shelbyville Board of Public Works and Safety, cited the importance of "managing an asset - that is what the track is," and Scott Carmony, president of the Shelby County Chamber of Commerce, agreed that anything that helps Indiana Downs to succeed will "help the community to flourish."
Indiana Downs attorney Lee McNeely addressed the commission before the vote on the ownership transfer, praising the contributions made by Estridge and his family to the horse racing industry and highlighting the changes the transfer will set in motion at the racetrack.
"The commission's approval of this petition will signal the beginning of a series of events, which will culminate in the creation of a regional recreational and entertainment facility second to none," McNeely said in describing upcoming changes at Indiana Downs.
Part of the legislation passed by the state Legislature earlier this year allows Indiana Downs and Hoosier Park in Anderson to operate up to 2,000 slot machines each at their tracks, but also mandates that both of them spend at least $100 million to build a facility to house the slot machines - in addition to paying the state $250 million in licensing fees.
Exceeding expectations
McNeely told the commission that Indiana Downs "will initiate a series of financial and operational undertakings, which will result in the construction of a facility which will far exceed the original guidelines establish by the state of Indiana." He added that this impressive "racino" will provide recreation and entertainment opportunities for thousands of Hoosiers and visitors to the state and provide job opportunities for hundreds of people in central Indiana.
McNeely said the revamped track should offer jobs and millions of dollars in annual wages to more than 600 full- and part-time employees and "create a continual stream of revenue" for the state, Shelbyville and Shelby County. He also noted that the tax revenue generated by the track will lead to additional economic development in the area.
Although the track is an obvious economic bonanza to Indiana, McNeely reminded the commission that the growth of the track will lead to an expansion of horse racing in the state.
"This important industry," McNeely said, "which has long been a significant factor in the Shelby County economy, will grow and prosper as never before."
McNeely's pleas to the commission for approval of the ownership transfer were echoed by the counsel to the IHRC, Robin Babbitt, and the executive director of the commission, Joe Gorajec. According to the chairperson of the IHRC, Sarah McNaught, the arguments presented in favor of the transfer were very persuasive to everyone on the commission.
"We are in total agreement that the transfer is good for the horse racing industry," McNaught said.
Plans for the $100 million-plus racino at Indiana Downs are still in the planning stages, according to McNeely, but he believes Oliver Racing will provide this information to the public in the near future.
All changes to the track in preparation for the installation of the slot machines must be approved by the IHRC and the Indiana Gaming Commission.